Best Business Investing Accounts Compared & Reviewed

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Business investing account are simliar in functionality to personal investing accounts but is specifically designed for businesses to manage and grow their investment assets.

Here Good Money Guide has compared, ranked and reviewed some of the best investing accounts for businesses. Corporate investing accounts allow businesses to invest their surplus funds in various financial instruments such as stocks, bonds, mutual funds, and other securities. The primary goal is to generate returns on idle cash or to build reserves for future business needs.

Our experts chose what we think are the best business investment accounts based on:

  • Over 30,000 votes and reviews in the coveted Good Money Guide annual awards
  • Our own experiences testing the company investment accounts with real money
  • An in-depth comparison of the features that make them stand out compared to alternative investing platforms for businesses
  • Our exclusive interviews with the business investment account company CEOs and senior management

Pros & Cons Of Business Investing Accounts

Opening a business investing account helps manage company funds, diversify investments, optimize returns, and enhance financial growth while benefiting from professional management and potential tax advantages.

Here is a round-up of the advantages and disadvantages of your business using a corporate investment account:

Pros

  • Capital Growth: Your businesses excess cash can be invested in the stock market and potentially increase in value
  • Hedging: You can use investment tools to hedge against currency exposure and regional growth/decline
  • FSCS protection: Business accounts in the UK still get FSCS protection up to £85,000

Cons

  • Risky: If the market moves against you, your company can lose money
  • Access: When your company money is invested, it can take time to get it back if you need it urgently
  • Fees: If you are only investing a small amount and choose the wrong account, your company funds can be eaten away in fees

What can companies invest in with a business investing account?

Business investment accounts generally have access to the same types of investments as personal investment accounts. In some circumstances they can also access ghigher risk types of investments like corporate bonds or illiquid off exchange assets, but only if the company directors qualify.

Here are the main things business can invest in:

  • Stocks: Public companies traded on stock exchanges like the LSE or NYSE
  • Bonds: Essentially IOUs from governments or companies that generate income through interest coupon payments
  • Funds: Investment trusts or investment funds managed by professional investment managers.
  • ETFs (Exchange-Traded Funds): Funds that trade on stock exchanges, representing a sector, commoditity, currency or diversified portfolio.
  • Money Market Instruments: Short-term, lower-risk investments that pay interest on cash.

What different types of account can businesses invest with?

Account Types:

  • Stock Brokerage Accounts: For trading and holding various types of investments like stocks, bonds, ETFs or funds.
  • Business Savings Accounts: For getting paid interest on cash with a focus on liquidity and safety, although sometimes to get the best interest rates there is a time limit
  • Treasury Management Accounts: For managing cash flow and short-term investments.

How to open a business investment account?

If you have a simple business ownership structure you should be able to open a corporate investment account online. However, if there are multiple owners and sibsiduries, you may still have to fill in paperwork and send in certified documentation.

But in general to open a business investing account you should follow these steps:

  1. Choose a provider: Select a bank or brokerage firm that offers business investment accounts.
  2. Apply for an Account: Provide necessary documentation, including business registration details, tax identification number, and corporate resolution authorizing the account.
  3. Set Objectives: Define investment goals, risk tolerance, and asset allocation.
  4. Manage and Monitor: Regularly review and adjust the investment portfolio to align with business goals and market conditions.

Should businesses open an investing account?

According to Lightyear’s analysis of Bank of England data, businesses in the UK have over half a trillion pounds between them, but £426 billion of it (76%) is sitting in savings or current accounts with an average interest rate of just 1.7%.

Business Investing Versus Cash

According to Lightyear’s analysis of Bank of England data released on the 1st July, businesses hold more cash than credit; the total amount of money held in deposits by private businesses in the UK has been rising since 2008 (when reporting started) – with a spike since COVID – and is continuing to trend upwards. It overtook the amount lent to businesses in 2017. The recent release of May’s figures reveals that businesses now hold £562 billion in deposits, vs £449 billion in credit.

But, whilst businesses have over half a trillion pounds that could be put to work, £426 billion of it (76%) is sitting in savings or current accounts with an average interest rate of just 1.7%

⚠️ FCA Regulation

All Business Investment Accounts that operate in the UK must be regulated by the FCA. The FCA is the Financial Conduct Authority and is responsible for ensuring that UK GIAs are properly capitalised, treat customers fairly and have sufficient compliance systems in place. We only feature Corporate Investment Accounts that are regulated by the FCA and where your businesses funds are protected by the Financial Services Compensation Scheme (FSCS).

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